PRACTICAL

OF
E - COMMERCE

MASTERS OF BUSINESS ADMINISTRATION

SUBMITTED BY: SUBMITTED TO:

Rahul MS. MANI MAM
Roll No.-H50220010 ASSISTANT PROFESSOR
MBA 2ND SEM PDM UNIVERSITY
Batch-2020-21

FACULTY OF COMMERCE AND MANAGEMENT STUDIES

INDEX
S.N PRACTICAL NAME & DATE
O

1. Practical-1 E-business sites 06/05/2021

2. PRACTICAL-2 a) Types of E-business models

b) Middle ware context and
integration E- business application
13/052021
3. Practical-3 applications of E -Commerce

17/06/2021
4. Practical-4 Learn to use internet banking
03/06/2021

5. Practical-5 Introduction to electronic payment

system 10/062021
6. Create a report on net banking & pay20/05/2021
 Practical – 1

AIM: Surfing of E-business sites

E-Business sites. are used for upgrading the business. There are many
business
Websites used; the common five-business sites are:

PAYTM
BIG BASKET
PHONEPE
AJIO
NYKA
PAYTM

Paytm Group Paytm is India's leading financial services company thatoffers

full-stack payments & financial solutions to consumers, offlinemerchants
and online platforms. The company is on a mission to bring half abillion
Indians into the mainstream economy through payments,
commerce,banking, investments, and financial services. One97
Communications Limitedthat owns the brand Paytm is founded by Vijay
Shekhar Sharma and isheadquartered in Noida, Uttar Pradesh. Its investors
include Softbank, AntFinancial, AGH Holdings, SAIF Partners, Berkshire
Hathaway, T Rowe Price, andDiscovery Capital. Vijay Shekhar Sharma,
Founder & CEO of Paytm and One97Communications Limited together own
Paytm Payments Bank, country's largestdigital bank with over 58 million
account holders. Working on its mission tobring un-served & under-served
Indians under the formal banking system, ithas made banking accessible &
convenient to people across the country throughinnovative use of
technology.
BIG BASKET

BigBasket - Company Profile Sunday, 24 Sep, 9.18 am Bigbasket is thelargest online

grocery supermarket in India. It was launched in 2011, quiteabout the time when e-
commerce was in its nascent stage in the country.Bigbasket was founded by Hari
Menon, VS Sudhakar, V S Ramesh, Vipul Parekhand Abhinay Choudhari. Bigbasket is
headquartered in Bengaluru and deliversto various cities in India such as Hyderabad,
Mumbai, Pune, Chennai, Delhi,Noida, Mysore, Coimbatore, Vijayawada- Guntur, Kolkata,
Ahmedabad-Gandhinagar,Lucknow-Kanpur, Gurgaon, Vadodara, Visakhapatnam, Surat,
Nagpur, Patna,Indore and Chandigarh Tricity city limits. Bigbasket was launched at a
timewhen India's busy workforce in cities was finding it difficult to allocatetime to buy
groceries and home essentials. Bigbasket gave them theflexibility to place their order
anytime and get the things delivered attheir preferred time. Bigbasket offers groceries
and food supplies in variouscategories such as fruits & veget
PHONEPE

PhonePe is an UPI-based App launched by e-commerce giant Flipkart,

toprovide a cashless and a seamless payment experience. You can install
thePhonePe app from google play store. When you install the PhonePe app
on yourAndroid, you need to enter our name, email, and phone number to
create anaccount. Here are the top 7 things you should know about
PhonePe: UPI app UPIpayment system allows money transfer between any
two bank accounts by using asmartphone. UPI allows a customer to pay
directly from a bank account todifferent merchants, both online and offline.
In UPA system to send money, wedon't need to give credit card details, IFSC
code, net banking passwords etc.The phonePe app is based on the Unified
Payment Interface (UPI) platform.Don't want account information Almost all
public and private banks are liveon UPI. The customer only needs to give the
mobile number and bank name whenthe customer connects his or her bank
account into the PhonePe app. UPI willretriev
AJIO

AJIO powered by Reliance Industries, has a unique identity andvibrancy. AJIO

in just 3 years, has becomes India's leading fashion andlifestyle player, with
over 3 million followers, 100+ brands and a footprintspanning across India.
Indie - its self-curated line has revived the richtextile heritage. Its women,
men and kids section has transformed the retailparadigms - creating one of
the largest product repository on e- commercetoday. From London, Dhaka
to China the AJIO fashion has made a mark. Astellar tech foundation &
supply chain has fueled this exponential growthwith one of lightest apps in
the market and a seamless integration ofdelivery services and payment
ecosystem catering to over 9000 pin codes. AJIOB2B, with a presence in 13
countries is transforming the wholesale model ofretail. For the first time,
wholesalers, small and medium retailers areconnected via the AJIO B2B app,
revolutionizing the stock, range and pricingavailable across.
Nykaa
Estimated number of monthly visitors: 20.84 million

Nykaa is another Indian founded brand which bucked the norm beginning as
a pure e-commerce platform and then expanding to open a brick and mortar
location in the Indira Gandhi International Airport in 2015.

Founded in 2012, Nykaa started as an online store selling beauty items in

categories including makeup, skin, hair, appliances, personal care,
fragrance, and LUXE. In more recent years, the brand has expanded its
range, bringing on more brands as well as introducing its very own
cosmetics and beauty line.

Funding
Since 2012, Nykaa has raised money through multiple rounds of funding. In
March 2020, it raised INR 100 crore from Steadview Capital, thus making it
a unicorn startup valued at US$ 1.2 billion. This was followed by another
tranche of INR 67 crore funding by Steadview in May 2020.

In October 2020, Bollywood actresses Alia Bhatt and Katrina Kaif invested
undisclosed amounts in the company through secondary funding.In
November later that year, global asset management firm Fidelity invested in
the company through a secondary sale of shares from an existing equity
investo

9
 PRACTICAL-2 (A)

TYPES E-BUSINESS MODELS

E-commerce business models can generally be categorized into the following categories.

 Business - to - Business (B2B)

 Business - to - Consumer (B2C)
 Consumer - to - Consumer (C2C)
 Consumer - to - Business (C2B)
 Business - to - Government (B2G)
 Government - to - Business (G2B)

Business - to - Business
A website following the B2B business model sells its products to an intermediate buyer who
then sells the product to the final customer. As an example, a wholesaler places an order
from a company's website and after receiving the consignment, sells the end product to the
final customer who comes to buy the product at one of its retail outlets.

10
Business - to - Consumer
A website following the B2C business model sells its products directly to a customer. A
customer can view the products shown on the website. The customer can choose a product
and order the same. The website will then send a notification to the business organization via
email and the organization will dispatch the product/goods to the customer.

11
Consumer - to - Consumer
A website following the C2C business model helps consumers to sell their assets like
residential property, cars, motorcycles, etc., or rent a room by publishing their information on
the website. Website may or may not charge the consumer for its services. Another
consumer may opt to buy the product of the first customer by viewing the post/advertisement
on the website.

Consumer - to - Business
In this model, a consumer approaches a website showing multiple business organizations for
a particular service. The consumer places an estimate of amount he/she wants to spend for
a particular service. For example, the comparison of interest rates of personal loan/car loan
provided by various banks via websites. A business organization who fulfills the consumer's
requirement within the specified budget, approaches the customer and provides its services.

12
Business - to - Government
B2G model is a variant of B2B model. Such websites are used by governments to trade and
exchange information with various business organizations. Such websites are accredited by
the government and provide a medium to businesses to submit application forms to the
government.

Government - to - Business
Governments use B2G model websites to approach business organizations. Such websites
support auctions, tenders, and application submission functionalities.

13
PRACTICAL – 2 (B)

Middleware Contexts: Text and integrating e-business

applications
The Need for Integration
Enterprises are typically comprised of hundreds if not thousands of applications that are custom-built,
acquired from a third-party, part of a legacy system, or a combination thereof, operating in multiple
tiers of different operating system platforms. It is not uncommon to find an enterprise that has 30
different Websites, three instances of SAP and countless departmental solutions.

We may be tempted to ask: How do businesses allow themselves to get into such a mess? Shouldn’t
any CIO of such an enterprise spaghetti architecture be fired? Well, like in most cases things happen
for a reason.

First of all, writing business applications is hard. Creating a single, big application to run a complete
business is next to impossible. The ERP vendors have had some success at creating larger-than-ever
business applications. The reality, though, is that even the heavyweights like SAP, Oracle, Peoplesoft
and the like only perform a fraction of the business functions required in a typical enterprise. We can
see this easily by the fact that ERP systems are one of the most popular integration points in today’s
enterprises.

Second, spreading business functions across multiple applications provides the business with the
flexibility to select the “best” accounting package, the “best” customer relationship management or the
order processing system that best suits the business’ needs. One-stop-shopping for enterprise
applications is usually not what IT organizations are interested in, nor is possible given the number
individual business requirements.

Vendors have learned to cater to this preference and offer focused applications around a specific core
function. However, the ever-present urge to add new functionality to existing software packages has
caused some functionality spillover amongst packaged business applications. For example, many
billing systems started to incorporate customer care and accounting functionality. Likewise, the
customer care software maker takes a stab at implementing simple billing functions such as disputes
or adjustments. Defining a clear functional separation between systems is hard: is a customer disputing
a bill considered a customer care or a billing function?

Users such as customers, business partners and internal users do generally not think about system
boundaries when they interact with a business. They execute business functions, regardless of the how
many internal systems the business function cuts across. For example, a customer may call to change

14
his or her address and see whether the last payment was received. In many enterprises, this simple
request can span across the customer care and billing systems. Likewise, a customer placing a new
order may require the coordination of many systems. The business needs to validate the customer ID,
verify the customer’s good standing, check inventory, fulfill the order, get a shipping quote, compute
sales tax, send a bill, etc. This process can easily span across five or six different systems. From the
customer’s perspective, it is a single business transaction.

In order to support common business processes and data sharing across applications, these
applications need to be integrated. Application integration needs to provide efficient, reliable and
secure data exchange between multiple enterprise applications.

Integration Challenges
Unfortunately, enterprise integration is no easy task. By definition, enterprise integration has to deal
with multiple applications running on multiple platforms in different locations, making the term ‘simple
integration’ pretty much an oxymoron. Software vendors offer EAI suites that provide cross-platform,
cross-language integration as well as the ability to interface with many popular packaged business
applications. However, this technical infrastructure presents only a small portion of the integration
complexities. The true challenges of integration span far across business and technical issues.

Enterprise integration requires a significant shift in corporate politics. Business applications generally
focus on a specific functional area, such as Customer Relationship Management (CRM), Billing, Finance,
etc. This seems to be an extension of Conway’s famous law that postulates that “Organizations which
design systems are constrained to produce designs which are copies of the communication structures
of these organizations.” As a result, many IT groups are organized in alignment with these functional
areas. Successful enterprise integration does not only need to establish communication between
multiple computer systems but also between business units and IT departments — in an integrated
enterprise application groups no longer control a specific application because each application is now
part of an overall flow of integrated applications and services.
Because of their wide scope, integration efforts typically have far-reaching implications on the
business. Once the processing of the most critical business functions is incorporated into an
integration solution, the proper functioning of that solution becomes vital to the business. A failing or
misbehaving integration solution can cost a business millions of Dollars in lost orders, misrouted
payments and disgruntled customers.
One important constraint of developing integration solutions is the limited amount of control the
integration developers typically have over the participating applications. In most cases, the
applications are “legacy” systems or packaged applications that cannot be changed just to be
connected to an integration solution. This often leaves the integration developers in a situation where
they have to make up for deficiencies or idiosyncrasies inside the applications or differences between
the applications. Often it would be easier to implement part of the solution inside the application
“endpoints”, but for political or technical reasons that option may not be available.

15
Despite the wide-spread need for integration solutions, only few standards have established
themselves in this domain. The advent of XML, XSL and Web services certainly mark the most
significant advance of standards-based features in an integration solution. However, the hype around
Web services has also given grounds to new fragmentation of the marketplace, resulting in a flurry of
new “extensions” and “interpretations” of the standards. This should remind us that the lack of
interoperability between “standards-compliant” products was one of the major stumbling blocks for
CORBA, which offered a sophisticated technical solution for system integration.
Also, existing XML Web Services standards address only a fraction of the integration challenges. For
example, the frequent claim that XML is the ‘Lingua franca” of system integration is somewhat
misleading. Standardizing all data exchange to XML can be likened to writing all documents using a
common alphabet, such as the Roman alphabet. Even though the alphabet is common, it is still being
used to represent many languages and dialects, which cannot be readily understood by all readers.
The same is true in enterprise integration. The existence of a common presentation (e.g. XML) does not
imply common semantics. The notion of “account” can have many different semantics, connotations,
constraints and assumptions in each participating system. Resolving semantic differences between
systems proves to be a particularly difficult and time-consuming task because it involves significant
business and technical decisions.
While developing an EAI solution is challenging in itself, operating and maintaining such a solution can
be even more daunting. The mix of technologies and the distributed nature of EAI solutions make
deployment, monitoring, and trouble-shooting complex tasks that require a combination of skill sets.
In many cases, these skill sets do not exist within IT operations or are spread across many different
individuals.
How Integration Patterns Can Help
There are no simple answers for enterprise integration. In our opinion, anyone who claims that
integration is easy must be either incredibly smart (or at least a good bit smarter than the rest of us),
incredibly ignorant (OK, let’s say optimistic), or they have a financial interest in making you believe that
integration is easy.

Even though integration is a broad and difficult topic, we can always observer some people who are
much better at it than others. What do these people know that others don’t? Since there is no such
thing as “Teach Yourself Integration in 21 Days” (this book sure ain’t!) it is unlikely that these people
know all the answers to integration. However, these people have usually solved enough integration
problems that they can compare new problems to prior problems they have solved. They know the
“patterns” of problems and associated solutions. They learned these patterns over time by trial-and-
error or from other experienced integration architects.

The “patterns” are not copy-paste code samples or shrink-wrap components, but rather nuggets of
advice that describe solutions to frequently recurring problems. Used properly, the integration patterns
can help fill the wide gap between the high-level vision of integration and the actual system
implementation.

16
The Wide World of Integration
We intentionally left the definition of “integration” very broad. To us it means connecting computer
systems, companies or people. While this broad definition gives us the convenience of sticking
whatever we find interesting into this book, it is helpful to have a closer look at some of the most
common integration scenarios. Helping clients design and implement integration solutions, we
repeatedly came across the following six types of integration projects:

Information Portals
Data Replication
Shared Business Functions
Service-Oriented Architectures
Distributed Business Processes
Business-to-Business Integration
This list is by no means a complete taxonomy of all things integration but it does help to illustrate the
kind of solutions that integration architects build. Many integration projects consist of a combination
of multiple types of integration. For example, reference data replication is often required in order to tie
applications into a single distributed business process.

Information Portal
Many business users have to access more than one system to answer a specific question or to perform
a single business function. For example, to verify the status of an order, a customer service
representative may have to access the order management system on the mainframe plus log on to the
system that manages orders placed over the Web. Information portals aggregate information from
multiple sources into a single display to avoid having the user access multiple systems for information.
Simple information portals divide the screen into multiple zones, each of which displays information
from a different system. More sophisticated systems provide limited interaction between zones, for
example when a user selects an item from a list in zone A, zone B refreshes with detailed information
about the selected item. Other portals provide even more sophisticated user interaction and blur the
line between a portal and an integrated application.

Data Replication
Many business systems require access to the same data. For example, a customer’s address may be
used in the customer care system (when the customer calls to change it), the accounting system (to
compute sales tax), the shipping system (to label the shipment) and the billing system (to send an
invoice). Many of these systems are going to have their own data stores to store customer related
information. When a customer calls to change his or her address all these systems need to change
their copy of the customer’s address. This can be accomplished by implementing an integration
strategy based on data replication.

17
There are many different ways to implement data replication. For example, some database vendors
build replication functions into the database, we can export data into files and re-import them into the
other system, or we can use message-oriented middleware to transport data records inside messages.

Shared Business Function

In the same way that many business applications store redundant data, they also tend to implement
redundant functionality. Multiple systems may need to check whether a social-security number is valid,
whether the address matches the specified postal code or whether a particular item is in stock. It
makes business sense to expose these functions as a shared business function that is implemented
once and available as a service to other systems.

A shared business function can address some of the same needs as data replication. For example, we
could implement a business function called ‘Get Customer Address’ that could allow other systems to
request the customer’s address when it is needed rather than always storing a redundant copy. The
decision between these two approaches is driven by a number of criteria, such as the amount of
control we have over the systems (calling a shared function is usually more intrusive than loading data
into the database) or the rate of change (an address may be needed frequently but change very
infrequently).

Service-Oriented Architecture
Shared business functions are often referred to as services. A service is a well-defined function that is
universally available and responds to requests from “service consumers”. Once an enterprise assembles
a collection of useful services, managing the services becomes an important function. First of all,
applications need some form of service directory, a centralized list of all available services. Second,
each service needs to describe its interface in such a way that an application can “negotiate” a
communications contract with the service. These two functions, service discovery and negotiation, are
the key elements that make up a service-oriented architecture.

Service-oriented architectures (SOAs) blur the line between integration and distributed applications. A
new application can be developed using existing, remote services that may be provided by other
applications. Therefore, calling a service may be considered integration between the two applications.
On the other hand a service-oriented architecture usually provides tools that make calling an external
service almost as simple as calling a local method (performance considerations aside). Because all
services are available in a consistent manner, SOAs are sometimes referred to as “service bus
architectures”.

Distributed Business Process

One of the key drivers of integration is the fact that a single business transaction is often spread across
many different systems. A previous example showed us that a simple business function such as “place
order” can easily touch six or seven systems. In most cases, all relevant functions are incorporated

18
inside existing applications. What is missing is the coordination between the applications. Therefore,
we can add a business process management component that manages the execution of a business
function across multiple existing systems.

The boundaries between a service-oriented architecture and a distributed business can blur. For
example, you could expose all relevant business functions as service and then encode the business
process inside an application that accesses all services via an SOA.

Business-to-Business Integration
So far we have mainly considered the interaction between applications and business functions inside
an enterprise. In many cases, business functions may be available from outside suppliers or business
partners. For example, the shipping company may provide a service for customers to compute
shipping cost or track shipments. Or a business may use an outside provider to compute sales tax
rates. Likewise, integration frequently occurs between business partners. A customer may contact a
retailer to inquire on the price and the availability of an item. In response, the retailer may ask the
supplier for the status of an expected shipment that contains the out-of-stock item.

Many of the above considerations apply equally to business-to-business integration. However,

communicating across the Internet or some other network usually raises new issues related to
transport protocols and security. Also, since many business partners may collaborate in an electronic
“conversation” standardized data formats are critically important.

PRACTICAL-3

APPLICATIONS OF E-COMMERCE

Introduction:
The term “Electronic commerce” (or e-Commerce) is  use of an electronic medium to carry
out commercial transactions. Most of the time, it refers to the sale of products through

19
 Internet.

Definition of E-commerce: Sharing business information, maintaining business relationships

and conducting business transactions using computers connected to telecommunication
network is called E-Commerce.
Definition: E-commerce is a process of  buying and selling of products and services by
businesses and consumers through an electronic medium, without using paper documents.
E-commerce is widely considered the buying and selling of products over the internet.

APPLICATIONS OF E-COMMERCE:
The applications of E-commerce are used in various business areas such as retail and
wholesale and manufacturing. The most common E-commerce applications are as follows:

1. Online marketing and purchasing

2. Retail and wholesale
3. Finance
4. Manufacturing
5. Online Auction
6. E-Banking
7. Online publishing
8. Online booking (ticket, seat.etc)
Online marketing and purchasing

Data collection about customer behavior, preferences, needs and buying patterns is possible
through Web and E-commerce. This helps marketing activities such as price fixation,
negotiation, product feature enhancement and relationship with the customer.

Retail and wholesale:

20
E-commerce has a number of applications in retail and wholesale. E-retailing or on-line
retailing is the selling of goods from Business-to-Consumer through electronic storesthat are
designed using the electronic catalog and shopping cart model. Cybermall is a single Website
that offers different products and services at one Internet location. It attracts the customer and
the seller into one virtual space through a Web browser.

Finance:

Financial companies are using E-commerce to a large extent. Customers can check the
balances of their savings and loan accounts, transfer money to their other account and pay
their bill through on-line banking or E-banking. Another application of E-commerce is on-line
stock trading. Many Websites provide access to news, charts, information about company

21
profile and analyst rating on the stocks.

Manufacturing:

E-commerce is also used in the supply chain operations of a company. Some companies form
an electronic exchange by providing together buy and sell goods, trade market information
and run back office information such as inventory control. This speeds up the flow of raw
material and finished goods among the members of the business community. Various issues
related to the strategic and competitive issues limit the implementation of the business
models. Companies may not trust their competitors and may fear that they will lose trade
secrets if they participate in mass electronic exchanges.

Auctions:
Customer-to-Customer E-commerce is direct selling of goods and services among customers.
It also includes electronic auctions that involve bidding. Bidding is a special type of auction
that allows prospective buyers to bid for an item. For example, airline companies give the
customer an opportunity to quote the price for a seat on a specific route on the specified date
and time.

E-Banking:

22
Online banking or E- banking is an electronic payment system that enables customers of a
financial institution to conduct financial transactions on a website operated by the
institution, Online banking is also referred as internet banking, e-banking, virtual banking and
by other terms. 

Online publishing:
Electronic publishing (also referred to as e-publishing or digital publishing) includes the digital
publication of e-books, digital magazines, and the development of digital libraries and
catalogs.

23
Online booking (ticket, seat.etc)

An Internet booking engine (IBE) is an application which helps the travel and tourism industry
support reservation through the Internet. It helps consumers to book flights, hotels, holiday
packages, insurance and other services online. This is a much needed application for the
aviation industry as it has become one of the fastest growing sales channels.

PRACTICAL 4

24
Learn to use to internet banking

Online banking, also known as internet banking, is an electronic payment system that enables

customers of a bank or other financial institution to conduct a range of financial

transactions through the financial institution's website. The online banking system will typically

connect to or be part of the core banking system operated by a bank and is in contrast to

branch banking which was the traditional way customers accessed banking services.

Some banks operate as a "direct bank" (or “virtual bank”), where they rely completely on internet

banking.

Internet banking software provides personal and corporate banking services offering features

such as viewing account balances, obtaining statements, checking recent transaction and

making payments. Access is usually through a secure web site using

username and password, but security is a key consideration in internet banking and many banks

also offer two factor authentication using a (security token).

Online banking facilities typically have many features and capabilities in common, but also

have some that are application specific. The common features fall broadly into several

categories:

 A bank customer can perform non-transactional tasks through online banking,

including:

 Viewing account balances

 Viewing recent transactions

25
  Downloading bank statements, for example in PDF format

 Viewing images of paid cheques

 Ordering cheque books

 Download periodic account statements

 Downloading applications for M-banking, E-banking etc.

 Bank customers can transact banking tasks through online banking, including:

 Funds transfers between the customer's linked accounts

 Paying third parties, including bill payments (see, e.g., BPAY) and third party fund

transfers (see, e.g., FAST)

 Investment purchase or sale

 Loan applications and transactions, such as repayments of enrollments

Creditcardapplications

26
username and password, but security is a key consideration in internet banking and many banks

also offer two factor authentication using a (security token).

Online banking facilities typically have many features and capabilities in common, but also

have some that are application specific. The common features fall broadly into several

categories:

 A bank customer can perform non-transactional tasks through online banking,

including:

 Viewing account balances

 Viewing recent transactions

 Downloading bank statements, for example in PDF format

 Viewing images of paid cheques

 Ordering cheque books

 Download periodic account statements

 Downloading applications for M-banking, E-banking etc.

 Bank customers can transact banking tasks through online banking, including:

 Funds transfers between the customer's linked accounts

 Paying third parties, including bill payments (see, e.g., BPAY) and third party fund

27
 transfers (see, e.g., FAST)

 Investment purchase or sale

 Loan applications and transactions, such as repayments of enrollments

 Credit card applications

 Register utility billers and make bill payments

 Financial institution administration

 Management of multiple users having varying levels of authority

 Transaction approval process

Some financial institutions offer special internet banking services, for example:

 Personal financial management support, such as importing data into personal

accounting software. Some online banking platforms support account aggregation

to allow the customers to monitor all of their accounts in one place whether they are

with their main bank or with other institutions.

The hybrid architecture shown above has the following three components:

1. Client: There are two clients for the application. One is a web-based user-friendly

client called bank customers. The other is for administration purposes. Client’s /

Administrator’s request is sent over the network in an encrypted data format. Also,

to ensure integrity of the request that is transmitted, it is subjected to hash

algorithm. In addition to that, the client / administrator have to decrypt the

28
response data sent by the application server which is in the encrypted format and also

verifies the integrity of the received data. The above encryption and decryption

process is done using hyperelliptic curve cryptographic technique and the integrity

of the data is ensured using MD5 hash algorithm.

2. Application Server: It takes care of the server application, JDBC-ODBC driver, and

tests for the ODBC connectivity for mapping the database in order to fulfill client’s

and administrator’s request. HECC system in the server decrypts the client’s /

administrator’s request and verifies the integrity of the request and finally it

communicates with the database to perform the request. Subsequently, the reply

from the database is encrypted as well as it is subjected to MD5 to ensure integrity

and is sent back to the client / administrator.

3. Database: Database Server will store customer’s details and bank data

29
  Register utility billers and make bill payments

 Financial institution administration

 Management of multiple users having varying levels of authority

 Transaction approval process

Some financial institutions offer special internet banking services, for example:

 Personal financial management support, such as importing data into personal accounting

software. Some online banking platforms support account aggregation to allow the customers to
monitor all of their accounts in one place whether they are with their main bank or with other

institutions.

The hybrid architecture shown above has the following three components:

4. Client: There are two clients for the application. One is a web-based user-friendly client called

bank customers. The other is for administration purposes. Client’s / Administrator’s request is

sent over the network in an encrypted data format. Also, to ensure integrity of the request that

is transmitted, it is subjected to hash algorithm. In addition to that, the client / administrator

have to decrypt the response data sent by the application server which is in the encrypted format

and also verifies the integrity of the received data. The above encryption and decryption process

is done using hyperelliptic curve cryptographic technique and the integrity of the data is ensured

using MD5 hash algorithm.

5. Application Server: It takes care of the server application, JDBC-ODBC driver, and tests for the

ODBC connectivity for mapping the database in order to fulfill client’s and administrator’s

request. HECC system in the server decrypts the client’s / administrator’s request and verifies the

integrity of the request and finally it communicates with the database to perform the request.

Subsequently, the reply from the database is encrypted as well as it is subjected to MD5 to

30
ensure integrity and is sent back to the client / administrator.
6. Database: Database Server will store customer’s details and bank data

31
PRACTICAL 5 : Introduction to electronic payment system

An e-commerce payment system facilitates the acceptance of

electronic payment for online transactions. Also known as a sample of Electronic

32
 Interchange (EDI), e-commerce payment systems have become increasingly popular due to the

widespread use of the internet-based shopping and banking.

Over the years, credit cards have become one of the most common forms of payment for e-

commerce transactions. In North America almost 90% of online retail transactions were made

with this payment type. Turban et al. goes on to explain that it would be difficult for an online

retailer to operate without supporting credit and debit cards due to their widespread use.

Increased security measures include use of the card verification number (CVN) which detects

fraud by comparing the verification number printed on the signature strip on the back of the

card with the information on file with the cardholder's issuing bank. Also online merchants have

to comply with stringent rules stipulated by the credit and debit card issuers (Visa and

MasterCard) this means that merchants must have security protocol and procedures in place to

ensure transactions are more secure. This can also include having a certificate from an

authorized certification authority (CA) who provides PKI (Public-Key infrastructure) for securing

credit and debit card transactions.

Despite widespread use in North America, there are still a large number of countries such as

China and India that have some problems to overcome in regard to credit card security. In the

meantime, the use of smartcards has become extremely popular. A smartcard is similar to a

credit card; however it contains an embedded 8-bit microprocessor and uses electronic cash

which transfers from the consumers’ card to the sellers’ device. A popular smartcard initiative is

the VISA Smartcard. Using the VISA smartcard you can transfer electronic cash to your card from

your bank account, and you can then use your card at various retailers and on the internet.

There are companies that enable financial transactions to take place over the internet, such as

Stripe for credit cards processing, Smartpay for direct online bank payments andPayPal for

alternative payment methods at checkout. Many of the mediaries permit consumers to establish

an account quickly, and to transfer funds into their on-line accounts from a traditional bank

account (typically via ACH transactions), and vice versa, after verification of the consumer's

identity and authority to access such bank accounts.

Also, the larger mediaries further allow transactions to and from credit
card accounts, although such credit card transactions are usually assessed a fee (either to the recipient or

33
the sender) to recoup the transaction fees charged to the mediary.

The speed and simplicity with which cyber-mediary accounts can be established and used have

contributed to their widespread use, although the risk of abuse, theft and other problems—with

34
 disgruntled users frequently accusing the mediaries themselves of wrongful behavior is associated with

them.
.

PASTE THE SCREENSHOT OF HOMEPAGE

STEP 1: LOGIN PAGE:

STEP2: HOMEPAGE OF THE PAY

35
STEP 3: PAYMENT OPTIONS:

36
STEP 4: PAYING TO CONTACT:

37
 STEP 5: TRANSACTION COMPLETE.
Money Sent

£18,700 ’

Mohit
\' c 'N‹› x x y x x x X x EU ñ'I

Paytm Payments Bank Ltd

x x x x x x x x x x »‹°

38
 PRACTICAL – 6

CREATE A REPORT ON NET BANKING & THE PAY

DETAILS OF A TRADING TRANSACTION

Online banking, also known as internet banking, is an electronic payment system that enables

customers of a bank or other financial institution to conduct a range of financial

transactions through the financial institution's website. The online banking system will typically

connect to or be part of the core banking system operated by a bank and is in contrast to

branch banking which was the traditional way customers accessed banking services.

Some banks operate as a "direct bank" (or “virtual bank”), where they rely completely on internet

banking.

Internet banking software provides personal and corporate banking services offering

features such as viewing account balances, obtaining statements, checking recent transaction

and making payments. Access is usually through a secure web site using a username and

password, but security is a key consideration in internet banking and many banks also offer

two factor authentication using a (security token).

To access a financial institution's online banking facility, a customer with internet access will

need to register with the institution for the service, and set up a password and other

credentials for customer verification. The credentials for online banking is normally not the same

as for telephone or mobile banking. Financial institutions now routinely allocate customers

numbers, whether or not customers have indicated an intention to access their online

banking facility. Customer numbers are normally not the same as account numbers, because a

39
number of customer accounts can be linked to the one customer number. Technically, the

customer number can be linked to any account with the financial institution that the

customer controls, though the financial institution may limit the range of accounts that may

be accessed to, say, cheque, savings, loan, credit card and similar accounts.

The customer visits the financial institution's secure website, and enters the online banking

facility using the customer number and credentials previously set up.

40
Each financial institution can determine the types of financial transactions which a customer may

transact through online banking, but usually includes obtaining account balances, a list of

recent transactions, electronic bill payments, financing loans and funds transfers between a

customer's or another's accounts. Most banks set limits on the amounts that may be transacted,

and other restrictions. Most banks also enable customers to download copies of bank

statements, which can be printed at the customer's premises (some banks charge a fee for

mailing hard copies of bank statements). Some banks also enable customers to download

transactions directly into the customer's accounting software. The facility may also enable the

customer to order a cheque book, statements, report loss of credit cards, stop payment on a

cheque, advice change of address and other routine actions.

Online banking facilities typically have many features and capabilities in common, but also

have some that are application specific. The common features fall broadly into several

categories:

 A bank customer can perform non-transactional tasks through online banking,

including:

 Viewing account balances

 Viewing recent transactions

 Downloading bank statements, for example in PDF format

 Viewing images of paid cheques

 Ordering cheque books

 Download periodic account statements

41
  Downloading applications for M-banking, E-banking etc.

 Bank customers can transact banking tasks through online banking, including:

42
  Funds transfers between the customer's linked accounts

 Paying third parties, including bill payments (see, e.g., BPAY) and third party fund

transfers (see, e.g., FAST)

 Investment purchase or sale

 Loan applications and transactions, such as repayments of enrolments

 Credit card applications

 Register utility billers and make bill payments

 Financial institution administration

 Management of multiple users having varying levels of authority

 Transaction approval process

Some financial institutions offer special internet banking services, for example:

 Personal financial management support, such as importing data into personal

accounting software. Some online banking platforms support account aggregation

to allow the customers to monitor all of their accounts in one place whether they are

with their main bank or with other institutions.

Security of a customer's financial information is very important, without which online

banking could not operate. Similarly the reputational risks to banks themselves are

important.Financial institutions have set up various security processes to reduce the risk of

43
unauthorized online access to a customer's records, but there is no consistency to the

various approaches adopted.

The use of a secure website has been almost universally embraced.

Though single password authentication is still in use, it by itself is not considered secure

enough for online banking in some countries. Basically there are two different

44
 security methods in use for online banking:

 The PIN/TAN system where the PIN represents a password, used for the login and

TANs representing one-time passwords to authenticate transactions. TANs can be

distributed in different ways, the most popular one is to send a list of TANs to the

online banking user by postal letter. Another way of using TANs is to generate them

by need using a security token. These token generated TANs depend on the time and a

unique secret, stored in the security token (two-factor authentication or 2FA).

More advanced TAN generators (chipTAN) also include the transaction data into the TAN

generation process after displaying it on their own screen to allow the user to discover

man-in-the-middle attacks carried out by Trojans trying to secretly manipulate the

transaction data in the background of the PC.

Another way to provide TANs to an online banking user is to send the TAN of the current

bank transaction to the user's (GSM) mobile phone via SMS. The SMS text usually quotes

the transaction amount and details, the TAN is only valid for a short period of time.

Especially in Germany, Austria and the Netherlands many banks have adopted this "SMS

TAN" service.

Usually online banking with PIN/TAN is done via a web browser using SSL secured

connections, so that there is no additional encryption needed.Signature based online

banking where all transactions are signed and encrypted digitally.

The following procedure explains how to use the Blank Report tool:

 On the Create tab, in the Reports group, click Blank Report.

A blank report is displayed in Layout view, and the Field List pane is displayed on the right side

of the Access window.

45
 In the Field List pane, click the plus sign next to the table or tables containing the fields

that you want to see on the report.

 Drag each field onto the report one at a time, or hold down CTRL and select several

fields, and then drag them onto the report at the same time.

46
 Use the tools in the Header/Footer group on the Design tab to add a logo, title, page

numbers, or the date and time to the report. Note, if you're using Access 2007, these tools

are in the Controls group on the Format tab.

In Access, the design of a report is divided into sections. You can view your report in Design

view to see its sections. To create useful reports, you need to understand how each section

works. For example, the section in which you choose to place a calculated control determines

how Access calculates the results. The following list is a summary of the section types and

their uses:

 Report Header This section is printed just once, at the beginning of the report. Use

the report header for information that might normally appear on a cover page, such as a

logo, a title, or a date. When you place a calculated control that uses the Sum aggregate

function in the report header, the sum calculated is for the entire report. The report

header is printed before the page header.

 Page Header This section is printed at the top of every page. For example, use a page

header to repeat the report title on every page.

 Group Header This section is printed at the beginning of each new group of records. Use

the group header to print the group name. For example, in a report that is grouped by

product, use the group header to print the product name. When you place a calculated

control that uses the Sum aggregate function in the group header, the sum is for the

current group.

 Detail This section is printed once for every row in the record source. This is where

you place the controls that make up the main body of the report.

 Group Footer This section is printed at the end of each group of records. Use a group

footer to print summary information for a group.

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 Page Footer This section is printed at the end of every page. Use a page footer to

print page numbers or per-page information.

 Report Footer This section is printed just once, at the end of the report. Use the

report footer to print report tot

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49